Author(s)
Estrada, FernandoKeywords
E62 - Fiscal PolicyN10 - General, International, or Comparative
B22 - Macroeconomics
C93 - Field Experiments
D53 - Financial Markets
D70 - General
E17 - Forecasting and Simulation: Models and Applications
C02 - Mathematical Methods
C72 - Noncooperative Games
E02 - Institutions and the Macroeconomy
H20 - General
O50 - General
E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury Policy
C70 - General
C33 - Panel Data Models ; Spatio-temporal Models
C53 - Forecasting and Prediction Methods ; Simulation Methods
B23 - Econometrics ; Quantitative and Mathematical Studies
A12 - Relation of Economics to Other Disciplines
C23 - Panel Data Models ; Spatio-temporal Models
D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
B41 - Economic Methodology
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The present study is, in particular, an attempt to test the relationship between tax level and political stability by using some economic control variables and to see the relationship among government effectiveness, corruption, and GDP. For the purpose, we used the Vector Autoregression (VAR) approach in the panel framework, using a country-level panel data from 59 countries for the period 2002 to 2008. The salient features of this model are: (a) simplicity is based on a limited number of variables (five) are categorical or continuous and not dependent on complex interactions or nonlinear effects. (b) accuracy: a low level of errors, the model achieves a high percentage of accuracy in distinguishing countries with inclination to political instability, compared to countries with political stability, (c) generality: the model allows to distinguish types of political instability, both resulting from acts of violence and failure of democracies to show, and (d) novelty: the model incorporates a tool that helps evaluate and exclude many variables used by the conventional literature. This approach is mainly based on the recognition of state structures and the relations between elites and parties.Date
2014Type
MPRA PaperIdentifier
oai::61207https://mpra.ub.uni-muenchen.de/61207/1/MPRA_paper_32414.pdf
Estrada, Fernando (2014): Estabilidad política y tributación.
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